1. Increasing Wholesale Market Volatility and Balancing Mechanism volume

Extreme volatility in wholesale prices has been driven by global market factors

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Phase I
Phase II
Phase III

EPEX SPOT; and Elexon

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Daily price spreads are forecasted to grow through to 2040

Data: Internal analysis based on data from leading market advisors.

Growing opportunities in the Balancing Mechanism

Batteries have traditionally faced dispatch constraints and were skipped from longer-duration runs.

  • Implementation since December 2023 of new storage parameters allows the NG ESO control room to plan the use of limited-duration assets in longer timescales, automatically and as a bulk dispatch
  • As a result, volume of BESS dispatched in the BM has doubled since December 2023 according to Modo Energy

“We anticipate that energy market volatility and continued demand for higher amounts of renewable energy will increase our strong value proposition for battery storage within NESF’s portfolio. We continue to evaluate battery storage opportunities that meet our investment threshold and look forward to building out this exciting growth sector for NESF.” – Ross Grier, UK Managing Director of NextEnergy Capital